NMLS #715386 Get pre-approved

Learning centerVA loans

VA Loans vs. FHA Loans: Which Is Right for You?

VA and FHA loans are both backed by the federal government, and both are more flexible than many conventional loans. If you’re eligible for both, though, the differences add up. Here’s how they compare.

Reviewed by Patriot Home Mortgage compliance, October 2026 · 3 min read

The basics

FHA loans are insured by the Federal Housing Administration, part of HUD. Anyone who meets the requirements can use one, and they’re popular with first-time buyers and borrowers rebuilding credit. Our FHA guide covers them in depth.

VA loans are guaranteed by the Department of Veterans Affairs and are available only to eligible veterans, service members and certain surviving spouses. Our VA eligibility guide explains who qualifies.

Side by side

VA loan FHA loan
Who can use it Eligible veterans, service members and certain surviving spouses Anyone who qualifies
Down payment None required in most cases 3.5% with a 580+ credit score; 10% from 500 to 579
Monthly mortgage insurance None Required; lasts the life of the loan with less than 10% down
Upfront cost One-time VA funding fee, unless exempt Upfront mortgage insurance premium
Credit score No VA minimum; Patriot’s minimum is currently 580 (subject to change) FHA minimum of 500
Property use Primary residence Primary residence

Down payment

This one is simple: VA usually requires nothing down, while FHA requires at least 3.5%. On most homes, that’s thousands of dollars you can keep.

Mortgage insurance

FHA loans carry an upfront premium plus an annual premium paid monthly. With less than 10% down, that annual premium lasts for the life of the loan. VA loans have no monthly mortgage insurance at all. For many borrowers, this is the difference that matters most over time.

Upfront fees

Both loans have a one-time charge that can usually be added to the loan: the VA funding fee or FHA’s upfront mortgage insurance premium. The difference is that veterans receiving VA disability compensation, and some others, don’t pay the VA funding fee at all. Current rates are on VA’s funding fee page and in HUD’s premium schedule.

Credit

FHA sets a floor of 500, with a larger down payment below 580. VA doesn’t set a minimum score; Patriot’s minimum for a VA loan is currently 580 (subject to change). VA’s underwriting also weighs residual income, the money left each month after your bills.

When FHA might still make sense

For many eligible borrowers, VA may come out ahead. FHA can be worth a look if:

  • You want to save your VA entitlement for a future purchase.
  • You’re buying with a co-borrower who isn’t your spouse or another veteran. VA’s rules on joint loans are tighter, and FHA allows family members who won’t live in the home to co-sign in some cases.
  • You’re not eligible for VA yet, for example before reaching the minimum service period.

If you’re eligible for both, price both. A loan officer can show you the monthly payment and cash needed at closing for each, side by side.

Talk to a Patriot loan officer

Every situation is different, and a short conversation is the quickest way to know what fits yours.

Find a loan officerSee where we lend

This article is general information, not an offer to lend or a commitment to lend. All loans are subject to credit approval, underwriting and property valuation. Belem Servicing LLC, NMLS ID #715386 (NMLS Consumer Access).

Sources